2) Interestingly, reforestation costs are now comparable to what we paid for a “complete” package in the mid-1980s — back then that would have included shearing, raking, harrowing, or bedding, and a one-time herbaceous release. Now we use herbicides and leave the site in better shape with less competition, and we are planting much better trees than we did then, but the cost is still around $200 per acre. It’s a good thing, since our prices are also at 1980 levels. Low planting costs are a help to the financial return equation.
3) Land prices are down, but not as much as you would think. It’s been puzzling to watch the drop. Once it started, we expected to see prices for small tracts drop into the $600 to $700 range, but they have stayed higher than that in many parts of the south. Perhaps the upswing in agricultural land prices has somehow buoyed the prices of...Members Only: Log in to read the rest of this article »
FIGURE 2. CHART SHOWING NOMINAL PRICES OF STUMPAGE PRICE TRENDS OVER TIME
FOREST LANDOWNER July/August 2012 47